FxWirePro: USDCAD trade idea

USDCAD is trading higher for past two days and jumped more than 50 pips from the low of 1.33720 made on Mar 26th 2019 on account of broad based US dollar buying and declining crude oil price. It has formed minor top around 1.34662 and declined till 1.32550.The declining US 10 year bond yield also supporting US dollar .

WTI crude has lost more than $1 after hitting fresh 4-month high as US crude stockpiles rise.US crude inventories rose by 2.8 million barrels compared to forecast of decrease of 1.2 million bbls. It hits low of $58.79 and is currently trading around $59.16.

On the higher side major resistance is around 1.34674 high made on Mar 7th and any convincing break above will take the pair to next level till 1.3500/1.3600. It should break above 1.3660 for bullish continuation.

The near term support is around 1.3370 and any violation below will drag the pair to next level till 1.3350/1.3320.Any violation below 1.3250 confirms minor weakness.

It is good to buy on dips around 1.34000 with SL around 1.3360 for the TP of 1.35000.

Resistance

 R1- 1.34675

R2 -1.35000

R3- 1.36000

Support               

S1- 1.3370

S2- 1.3320

S3- 1.3250